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China’s Sepco Wins EPC Contract for Saudi Al Khushaybi Energy Storage Project

Chinese state-owned contractor Shandong Electric Power Construction Corporation has secured an EPC contract for the Al Khushaybi battery energy storage project in Saudi Arabia. The facility features a planned capacity of 500 MW/2,000 MWh as part of the Kingdom's utility-scale storage program. French energy firm Engie and Saudi-based Haji Abdullah Alireza & Co. are developing the project, with Saudi Power Procurement Company as off-taker.

Published Source: Gulf Construction
Illustration: A modern utility-scale battery energy storage system installation under construction in an arid desert environment, featuring rows of wh
Illustration

Chinese state-owned EPC contractor Shandong Electric Power Construction Corporation (Sepco) secured an engineering, procurement, and construction contract for the Saudi Arabia Group 1-KSB battery energy storage project on November 1, 2026, according to Gulf Construction.

The Al Khushaybi Battery Energy Storage System (BESS) features a planned capacity of 500 MW/2,000 MWh. The installation forms part of Saudi Arabia's initial utility-scale energy storage rollout.

The project is developed by a joint consortium comprising French energy group Engie and Saudi-based Haji Abdullah Alireza & Co., with the Saudi Power Procurement Company acting as the off-taker.

Sepco will construct the facility to improve national grid stability and balance fluctuating electricity demand. The system is designed to facilitate the integration of large-scale solar and wind power generation into the national grid under Saudi Vision 2030 targets.

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